SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited

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MEMORY AID IN CIVIL LAW

OBLIGATIONS AND CONTRACTS
I. OBLIGATIONS
OBLIGATION  a juridical necessity to give, to do, or not to do.  Requisites: 1. juridical or legal tie 2. active subject (obligee or creditor) 3. passive subject (obligor or debtor) 4. fact, prestation or service constituting the object of the obligation  Requisites: 1. it must be licit 2. it must be possible, physically & juridically 3. it must be determinate or determinable 4. it must have a possible equivalent in money  Sources: 1) Law 2) Contracts 3) Quasi-contracts 4) Delicts 5) Quasi-delicts  QUASI-CONTRACTS – those juridical relations arising from lawful, voluntary and unilateral acts, based on the principle that no one shall be unjustly enriched or benefited at the expense of another.  Principal Kinds of Quasi-contracts: 1. Negotiorum gestio – arises whenever a person voluntarily takes charge of the agency or management of the business or property of another without any power or authority from the latter 2. Solutio indebiti – arises whenever a person unduly delivers a thing through mistake to another who has no right to demand it. NATURE OF OBLIGATIONS 1. Personal Obligations – obligations to do a) Positive b) Negative 2. Real Obligations – obligations to give a) Determinate or specific b) Generic RIGHTS OF A CREDITOR Determinate Generic

1. compel specific performance; 2. damages, exclusive or in addition to specific performance; 3. entitlement to fruits, interests from the time the obligation to deliver arises.

1.ask for performance of the obligation 2. ask that the obligation be complied with at the expense of the debtor 3. damages in case of breach

OBLIGATIONS OF THE DEBTOR Determinate Generic 1. specific 1. deliver the thing performance; which is neither of 2. take care of the superior nor inferior thing with the proper quality; diligence of a good 2. damages in case father of a family; of breach of the 3. deliver all obligation by reason of accessions and delay, fraud, accessories of the negligence or thing even though they contravention of the may not have been tenor thereof. mentioned; 4. pay damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof. EFFECTS OF BREACH Positive Personal Obligations The creditor can: (1) have the obligation performed or executed at the expense of the obligor; (2) ask that what has been poorly done be undone; (2) recover damages because of breach of the obligation (Art. 1167) Negative Personal Obligations The creditor can (1) have the obligation undone at the expense of the obligor; and (2) ask for damages.(Art. 1168)

Cases where the remedy granted under Art. 1168 is not available: 1) Where the effects of the act which is forbidden, are definite in character 2) Where it would be physically or legally impossible to undo what has been undone because of the very nature of the act itself or because of a provision of law, or because of rd conflicting rights of 3 persons BREACH OF OBLIGATIONS 1. Voluntary – debtor, in the performance of the obligation, is guilty of:

CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. CORNEJO; EDP: JUDITH Y. RAMOS Members: Malou Ababa, Jinky Mangantulao, Ana Liza Pural, Roderick Reyes, Ma. Janice Tejano, Anna Leah Y. Tiongson, Alwin Bryan Villaflor

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time is of the essence 3. 2. RAMOS Members: Malou Ababa. the aggravation of the injury resulting to the creditor GENERAL RULE: No liability in case of fortuitous event. occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner 4. FRAUD  deliberate and intentional evasion of the fulfillment of an obligation. That agreed upon by the parties. Ana Liza Pural. 1170) 1. Ma. 3. Janice Tejano. 1942. If both the contract and law are silent. 3. Roderick Reyes. diligence of a good father of a family FORTUITOUS EVENT  an event w/c could not be foreseen or w/c though foreseen was inevitable  Requisites: 1. that required by law in the particular case. there is acknowledgment of default  There can be delay only in positive obligations. 552(2). 2148 and 2159 of the Civil Code.obligation is not guished extinguished based on the rule that a genus never perishes REMEDIES OF CREDITOR TO PROTECT CREDIT: 1) Exhaustion of debtor’s property CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. Results in the nonfulfillment or breach of the obligation 4. EXCEPTIONS: 1 When expressly declared by law  E. Incidental Fraud/dolo incidente (Art.  In reciprocal obligations one party incurs in delay from the moment the other party fulfills his obligation. Alwin Bryan Villaflor 2 . c. while he himself does not comply or is not ready to comply in a proper manner with what is incumbent upon him. cause is independent of the will of the debtor 2. CORNEJO. Purpose is to evade the normal fulfillment of the obligation Causal Fraud/dolo causante (Art. Anna Leah Y. 1165(3). b. 1268. Present during the performance of a preexisting obligation 2.g. There can be no delay in negative obligations. obligation or law expressly so declares 2. 1338) Present during the time of birth of the obligation Purpose is to secure the consent of the other to enter into a contract a. the event must be unforeseeable or unavoidable 3. demand is useless as when obligor has rendered beyond his power to perform 4. d. EXCEPTIONS: 1. Gives rise to a right of the creditor to recover damages from the debtor Results in the vitiation of consent Gives rise to a right of an innocent party to annul the contract MEMORY AID IN CIVIL LAW NEGLIGENCE  omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! default (mora) fraud (dolo) negligence (culpa) contravention of the tenor of the obligation  debtor is liable for damages 2. of the time and of the place DILIGENCE REQUIRED 1. Involuntary – debtor is unable to comply with his obligation because of fortuitous event  debtor is not liable for damages DEFAULT or DELAY  non-fulfillment of the obligation with respect to time  Requisites: 1) Obligation is demandable and already liquidated 2) The debtor delays performance 3) The creditor requires performance judicially or extra-judicially  3 Kinds: 1) Mora solvendi – delay of the debtor to perform his obligation 2) Mora accipiendi – delay of the creditor to accept the delivery of the thing w/c is the object of the obligation 3) Compensatio morae – delay of the parties in reciprocal obligation  When incurred: GENERAL RULE: There must be a DEMAND (judicial or extra-judicial) before delay may be incurred. In the absence of stipulation. Jinky Mangantulao. 1165(3)). EDP: JUDITH Y. Art. 2147. Tiongson. 2 When expressly declared by stipulation or contract 3 When the nature of the obligation requires the assumption of risk 4 When the obligor is in default or has promised to deliver the same thing to 2 or more persons who do not have the same interest (Art. debtor must be free from any participation in 5. EFFECT OF FORTUITOUS EVENT Determinate Generic Obligation Obligation obligation is extin.

EXCEPTIONS: 1. Before the fulfillment of the of the condition. Casual – fulfillment of the condition depends upon chance and/or upon the will of a third person 5. 3.condition involves the omission of an act 10. Impossible . Impossible – condition is not capable of realization according to nature. the debtor shall appropriate the fruits & interests received. the obligation arisies or becomes effective. Tiongson. RAMOS Members: Malou Ababa. Loss a. DETERIORATION AND IMPROVEMENT IN REAL OBLIGATIONS 1. the condition depends upon the will of the debtor. Roderick Reyes. When the obligation imposes reciprocal prestations upon the parties. Rule in Impossible Conditions GENERAL RULE: They shall annul the obligation which depends upon them. in testamentary dispositions 5. If the obligation is unilateral. EDP: JUDITH Y. law. Mixed – fulfillment of the condition depends partly upon chance and/or the will of a third person 6. b. After the fulfillment of the condition. Divisible – condition is susceptible of partial realization 11. purely personal right 2) When there is a stipulation of the parties that they are not transmissible 3) Not transmissible by operation of law PURE OBLIGATION  one whose effectivity or extinguishment does not depend upon the fulfillment or non-fulfillment of a condition or upon the expiration of a term or period CONDITIONAL OBLIGATION  one whose effectivity is subordinated to the fulfillment or non-fulfillment of a future and uncertain fact or event Kinds of conditions: 1. in simple or renumenatory donations 4. Before fulfillment of the condition. the fruits & interests shall be deemed to have been mutually compensated 5. The effects of a conditional obligation to give once the condition has been fulfilled. all of which must be realized 13. Deterioration a. if the fulfillment depends exclusively upon the will of the creditor. in case of conditions not to do an impossible thing Effects of Suspensive Condition 1.g. with debtor’s fault – debtor pays damages 2. the condition as well as the obligation itself is void. Suspensive – fulfillment of the condition results in the acquisition of rights arising out of the obligation 2. shall retroact to the day of the constitution of the obligation but not as to fruits & interest 4.condition is not capable of realization according to nature. Alternative – where there are several conditions but only one must be realized CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. Jinky Mangantulao. Ana Liza Pural. law. the right which the creditor has already acquired by virtue of the obligation is subject to a threat of extinction. the demandability as well as the acquisition or effectivity of the rights arising from the obligation.condition is not susceptible of partial realization 12. Anna Leah Y. Conjunctive – where there are several conditions. Potestative – fulfillment of the condition depends upon the will of a party to the obligation 4. Negative . without debtor’s fault – obligation is extinguished b. Resolutory – fulfillment of the condition results in the extinguishments of rights arising out of the obligation 3. 2. Janice Tejano. Alwin Bryan Villaflor 3 . public policy ar good customs 7. if obligation is divisible 3. Indivisible . Positive – condition involves the performance of an act 9. If the fulfillment of the potestative. unless from the nature & circumstances it should be inferred that the intention of the persons constituting the same was different  Constructive fulfillment of Suspensive Condition: the condition shall be deemed fulfilled when the obligor prevents its fulfillment Effects of Resolutory Condition 1. without debtor’s fault – impairment to be MEMORY AID IN CIVIL LAW GENERAL RULE: Rights acquired by virtue of an obligation are transmissible in character EXCEPTIONS: 1) When they are not transmissible by their very nature e.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! 2) Accion subrogatoria – to be subrogated to all the rights and actions of the debtor save those which are inherent in his person 3) Accion pauliana . Ma. public policy ar good customs 8. both the condition and obligation is valid. pre-existing obligation 2. 2.impugn all the acts w/c the debtor may have done to defraud them. CORNEJO. nd  2 & 3rd remedies are subsidiary to the first Rule in Potestative Conditions a. Upon fulfillment of the condition. the parties shall return to each other what they received EFFECTS OF LOSS.

fortuitous loss extinguishes the obligation ALTERNATIVE Obligations 1. when after the obligation has been contracted. comprehends only one object or prestation which is due. but it may be complied with by the delivery of another object or performance of another prestation in substitution 2. it is presumed to have been established for the benefit of both creditor and debtor EXCEPTION: When it appears from the tenor of the period or other circumstances that it is established in favor of one or the other GENERAL When court may fix period: 1. 2. at the debtor’s expense – debtor shall have no other right than that granted to a usufructuary RECIPROCAL OBLIGATIONS  Those which are created or established at the same time.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! borne by the creditor b. with debtor’s fault – creditor may choose between the rescission of the obligation and its fulfillment with indemnity for damages in either case 3. EXCEPTIONS: 1. when debtor attempts to abscond. 4. When debtor loses right to make use of period: (IFOVA) 1. and which result in mutual relationships of creditor & debtor between the parties TACIT RESOLUTORY CONDITION  If one of the parties fails to comply with what is incumbent upon him. Anna Leah Y. If there is an express stipulation of automatic rescission 2. RAMOS Members: Malou Ababa. When the debtor voluntarily returned the thing  Rescission will be ordered only where the breach is substantial as to defeat the object of the parties in entering into the agreement  The remedy of rescission and fulfillment are alternative. out of the same cause. when debtor violates any undertaking. the existence of the obligation is not affected 5. Improvement a. if the debtor binds himself when his means permit him to do so. but from its nature and circumstances it can be inferred that a period was intended by the parties. or 5. Janice Tejano. FACULTATIVE Obligations 1. EDP: JUDITH Y. and when through fortuitous event they disappear. Ana Liza Pural. and 3. if the obligation does not fix a period. Tiongson. interval of time w/c is future & certain 2. although it may not be known when 3. if the duration of the period depends upon the will of the debtor. Jinky Mangantulao. fact or event w/c is future and uncertain 2. there is a right on the part of the other to rescind the obligation.exerts an influence upon the time of demandability or extinguishment of an obligation 4. Ma. in consideration of which the creditor agreed to the period. unless he gives new ones equally satisfactory. when by his own act he has impaired said guaranties or securities after their establishment. CORNEJO. 3. comprehends several objects or prestations which are due but may be complied with by the delivery or performance of only one of them 2. not cumulative OBLIGATION WITH A PERIOD  those whose demandability or extinguishment is subject to the expiration of a term or period TERM 1. when it is left exclusively to the will of the debtor. 2. unless he gives guaranties or securities for the debt (the insolvency need not be judicially declared). RIGHT TO RESCIND GENERAL RULE: The right to rescind needs judicial approval. he becomes insolvent. when he does not furnish to the creditor the guaranties or securities he promised. does not have any retroactive effect unless there is an agreement to the contrary CONDITION 1.future and uncertain fact or event w/c may or may not happen 3.when it is left exclusively to the will of the debtor.exerts an influence upon the very existence of the obligation itself 4.has retroactive effect 5. the very existence of the obligation is affected MEMORY AID IN CIVIL LAW RULE: When a period is designated for the performance or fulfillment of an obligation.interval of time w/c must necessarily come. fortuitous loss of all prestations will extinguish the obligation CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. by the thing’s nature or by time – improvement shall inure to the benefit of the creditor b. Roderick Reyes. Alwin Bryan Villaflor 4 .

the solidarity among the debtors remains MEMORY AID IN CIVIL LAW  In alternative obligations. plurality of subjects is indispensable 3. Tiongson. the obligation can be enforced only by proceeding against all of the debtors 2) If there are 2 or more creditors. EXCEPTIONS: 1. plurality of subjects is not required 3. or the price of that which. culpable loss of any object due will give rise to liability to debtor 4. while each debtor can be held liable only for the payment of his proportionate share of the debt JOINT INDIVISIBLE OBLIGATIONS 1) If there are 2 or more debtors. but also all the rights which correspond to the other creditors. If the novation is prejudicial. when there is liability on the part of the debtors because of the breach. CORNEJO. but also in the benefits CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. has disappeared with a right to damages 3) If all the things are lost through the fault of the debtor. indivisibility of the obligation is terminated SOLIDARITY 1. choice takes effect only upon communication of the choice to the other party and from such time the obligation ceases to be alternative. Ma.  The debtor cannot choose those prestations or undertakings which are impossible. the choice by the creditor shall fall upon the price of any 1 of them. Anna Leah Y. the creditor may claim any of those subsisting. when the law requires solidarity 3. although each for his own share. Effect of Novation upon Solidary Obligation 1. Ana Liza Pural.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! 3. If right of choice belongs to debtor: 1) If through a fortuitous event – debtor cannot be held liable for damages 2) If 1 or more but not all of the things are lost or one or some but not all of the prestations cannot be performed due to the fault of the debtor. not only in the obligation. obligation is converted into 1 of indemnity for damages because of breach. If it is beneficial and the creditor who effected the novation is able to secure performance of the obligation. also with indemnity for damages Note: These rules shall be applied to obligations to do or not to do. EDP: JUDITH Y. Roderick Reyes. when the nature of the obligation requires solidarity KINDS OF SOLIDARITY 1. the fulfillment of or compliance with the obligation requires the concurrence of all the debtors. the concurrence or collective act of all the creditors. JOINT AND SOLIDARY OBLIGATIONS GENERAL RULE: Obligation is presumed joint if there is concurrence of two or more debtors and/or creditors. is also necessary for the enforcement of the obligation INDIVISIBILITY 1. the debtor shall perform the obligation by delivering that which the creditor should choose from among the remainder. Active solidarity  solidarity of creditors  each creditor is empowered to exercise against the debtor not only the rights which correspond to him. in case of breach. although each for his own share. through the fault of the former. with the consequent right to demand reimbursement from the others for their corresponding shares once payment has been made. Jinky Mangantulao. or that which remains if only 1 subsists 2) If the loss of 1 of the things occurs through the fault of the debtor. creditor cannot hold the debtor liable for damages because the debtor can still comply with his obligation B. refers to the prestation which constitutes the object of the obligation 2. such creditor shall be liable to the others for the share which corresponds to them. with the consequent obligation to render an accounting of his acts to such creditors 2. unlawful or w/c could not have been the object of the obligation EFFECT OF LOSS OF OBJECT OF OBLIGATION: A. Consequently. RAMOS Members: Malou Ababa. refers to the legal tie or vinculum juris & consequently to the subjects or parties of the obligation 2. Passive solidarity  solidarity of debtors  liability of each debtor for the payment of the entire obligation. choice may pertain to creditor or even third person JOINT DIVISIBLE OBLIGATIONS  each creditor can demand for the payment of his proportionate share of the credit. the solidary creditor who effected the novation shall reimburse the others for damages incurred by them 2. If right of choice belongs to the creditor: 1) If 1 of the things is lost through a fortuitous event. when expressly stated to be solidary 2. culpable loss obliges the debtor to deliver substitute prestation without liability to debtor 4. Alwin Bryan Villaflor 5 . choice pertains only to debtor 3. Janice Tejano.

If the principal obligation has been irregularly complied with 3. Janice Tejano. If the remission covers the entire obligation . the relation between the other creditors not substituted and the debtor or debtors is maintained. Condonation or remission of the debt 5. Tiongson. 2. Effect of Compensation and Confusion upon Solidary Obligation 1. Rescission 9. what is left is the ensuing liability for reimbursement within each group: a. Alwin Bryan Villaflor 6 . Roderick Reyes. he is completely released from the creditors but is still bound to his co-debtors 3. If the novation is effected by subrogating a third person in the rights of the solidary creditor responsible for the novation. debtor is sued for refusal to pay the agreed penalty 2. When the obligation expressly stipulates the contrary 2. 4. If the principal obligation has been partly complied with 2. If the remission is for the benefit of one of the debtors and it covers only a part of his share in the obligation. Defenses personal to the others. Novation 7. the solidary creditor who effected the novation is liable for the acts of the new debtor in case the is deficiency in performance or in case damages are incurred by the other solidary creditors as a result of the substitution. If the confusion or compensation is partial. EXCEPTIONS: 1. EXCEPTIONS: 1. Compensation 4. When the obligation is in part liquidated and in part unliquidated OBLIGATIONS WITH A PENAL CLAUSE  one to which an accessory undertaking is attached for the purpose of insuring its performance by virtue of which the obligor is bound to pay a stipulated indemnity or perform a stipulated prestation in case of breach  Purpose of Penalty: 1) To insure the performance of the obligation 2) to liquidate the amount of damages to be awarded to the injured party in case of breach of the principal obligation 3) in certain exceptional cases. Defenses personal to him or pertaining to his own share 3.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! 3.the obligation is totally extinguished and the entire juridical relation among the debtors is extinguished all together 2. If the remission is for the benefit of one of the debtors and it covers his entire share in the obligation. The debtors benefited by the extinguishments of the obligation is obliged to reimburse the debtor who made the confusion or compensation possible Effect of Remission upon Solidary Obligation: 1. The creditor causing the confusion or compensation is obliged to reimburse the other creditors b. Ana Liza Pural. EDP: JUDITH Y. Defenses derived from the very nature of the obligation 2. Anna Leah Y. Loss of the thing due 2. debtor is guilty of fraud  The debtor cannot exempt himself from the performance of the principal obligation by paying the stipulated penalty unless when the right has been expressly reserved for him  The creditor cannot demand the fulfillment of the principal obligation and the satisfaction of the stipulated penalty at the same time unless the right has been clearly granted him When penalty may be reduced: 1. Ma. Annulment 8. but only as regards that part of the debt for w/c the latter are responsible DIVISIBLE AND INDIVISIBLE OBLIGATIONS GENERAL RULE: The creditor cannot be compelled partially to receive the prestation in which the obligation consists. If the penalty is iniquitous or unconscionable even if there has been no performance MODES OF EXTINGUISHMENT OF 3 2 OBLIGATIONS (LFC NARP ) 1. Prescription 10. stipulation to the contrary 1. RAMOS Members: Malou Ababa. Payment or performance CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. Defenses available to a Solidary Debtor: 1. Jinky Mangantulao. the rules regarding application of payment shall apply. If the confusion or compensation is total. Fulfillment of resolutory condition 3. When the different prestations constituting the objects of the obligation are subject to different terms and conditions 3. the obligation is extinguished. Confusion or merger of rights of the creditor and debtor 6. neither may the debtor be required to make partial payments. his character as a solidary debtor is not affected. CORNEJO. to punish the obligor in case of breach of the principal obligation MEMORY AID IN CIVIL LAW GENERAL RULE: The penalty fixed by the parties is a compensation or substitute for damages in case of breach. If the novation is effected by substituting another person in place of the debtor.

payment shall be applied to all proportionately. all of the debts must be due 4. amount paid by the debtor must not be sufficient to cover the total amount of all the debts GENERAL RULE: The right to designate the debt to which the payment shall be applied primarily belongs to the debtor. 2. If the debts due are of the same nature and burden. Roderick Reyes. Tiongson. If payment was with knowledge and consent of the debtor: a. as the object of the prestation. service or forbearance. The debt most onerous to the debtor shall be deemed satisfied. EXCEPTION: If the debtor does not avail of such right and he accepts from the creditor a receipt in which the application is made. Janice Tejano. must be performed or observed Persons who may pay the obligation: 1) the debtor himself or his legal representative 2) any third person GENERAL RULE: Creditor is not bound to accept payment or performance by a third person. b) Dation in Payment (DACION EN PAGO)  transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of the obligation. when it has been cashed. Payment in cash – must be made in the currency stipulated. when made by a third person who has an interest in the fulfillment of the obligation 2. any person authorized to receive it. EDP: JUDITH Y. Payment made to a 3 person.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! PAYMENT OR PERFORMANCE  means not only the delivery of money but also the performance in any other manner of an obligation Integrity of Payment GENERAL RULE: A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered. Anna Leah Y. as the case may be. can recover entire amount paid b. EXCEPTIONS: rd 1. there must be 2 or more debts of the same kind 3. not considered legal tender and may be refused by the creditor. CORNEJO. then in the legal tender in the Philippines.  Requisites: 1. Payment made to the possessor of the credit. Ma. there must be only 1 debtor & only 1 creditor 2. provided that it has redounded to the benefit of the creditor. satisfaction of the money obligation of the debtor GENERAL RULE: If payment is made to a person other than those enumerated.  Requisites: 1. Alwin Bryan Villaflor 7 . or b. provided that it was made in good faith. Rules in Monetary Obligations: 1. Jinky Mangantulao. 2. the person in whose favor the obligation has been constituted 2. Ana Liza Pural. if not possible. alienation to the creditor of a property by the debtor with the consent of the former 3. rd MEMORY AID IN CIVIL LAW 2.  If the above rule is not applicable: 1. knowing its incompleteness or irregularity & w/out expressing any protest or objection 3) When there is an express stipulation 4) When the debt is in part liquidated and in part unliquidated Identity of Payment . EXCEPTIONS: 1. It shall only produce the effect of payment: a. it shall not be valid. If payment was without knowledge or against the will of the debtor: can recover only insofar as payment has been beneficial to the debtor To whom payment must be made: 1. when it has been impaired through the fault of the creditor 4 Special Forms of Payment: a) Application of payment b) Dation in Payment c) Payment by Cession d) Tender of payment and Consignation a) Application of Payment  designation of the debt to which the payment must be applied when the debtor has several obligations of the same kind in favor of the same creditor. can be subrogated to all the rights of the creditor 2. RAMOS Members: Malou Ababa. EXCEPTIONS: 1) When the obligation has been substantially performed in good faith 2) When the obligee accepts performance. existence of a money obligation 2. stipulation to the contrary  Rights of 3 person who paid the obligation: 1. CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. his successor in interest 3.requires that the very thing. Payment in check or other negotiable instrument – not considered payment.

EDP: JUDITH Y. It must be accepted by the debtor 3. Ma. c. 2. creditor is absent or unknown. as a result of which it is extinguished in its entirety or in that part or aspect of the same to which the remission refers. the latter may obtain payment of their credits. when the loss of the thing occurs after the debtor incurred in delay. when by law. e.  Special Requisites: 1. f. In Generic Obligations to Give GENERAL RULE: Obligation is not extinguished because the genus of a thing cannot perish. merely releases debtor for net proceeds of things ceded or assigned. There must be a valid and unconditional tender of payment or any of the causes stated by law for effective consignation without previous tender of payment exists 3. and g. Consignation shall be made by depositing the things due at the disposal of judicial authority 5. CONDONATION OR REMISSION OF THE DEBT  an act of pure liberality by virtue of which the obligee. when the debtor promised to deliver the same thing to two or more persons who do not have the same interest. The consignation of the thing due must first be announced to the persons interested in the fulfillment of the obligation 4. acceptance of the cession by the creditors DATION IN PAYMENT 1.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! c) Payment by Cession  debtor abandons all of his property for the benefit of his creditors in order that from the proceeds thereof. Tiongson. thing delivered is considered as equivalent of performance 4. when without just cause creditor refuses to give a receipt  It is the consignation which constitutes a form of payment and must follow. without receiving any price or equivalent. Ana Liza Pural. EXCEPTIONS: a. RAMOS Members: Malou Ababa. b. when the title of the obligation has been lost 5. creditor incapacitated to receive payment at the time it is due 3. plurality of debts 2. Alwin Bryan Villaflor 8 . EXCEPTIONS: 1. proved or implied from the conduct of the creditor PAYMENT BY CESSION 1. Janice Tejano. It must be gratuitous 2. EXCEPTION: In case of generic obligations whose object is a particular class or group with specific or determinate qualities (Limited Generic Obligations) 3. partial or relative insolvency of the debtor 3. universality of property of debtor is what is ceded 4. obligor is liable even for fortuitous event. In Determinate Obligations to Give GENERAL RULE: Obligation is extinguished. Roderick Reyes. In Obligations to Do GENERAL RULE: Obligation extinguished when prestation becomes legally or physically impossible. renounces the enforcement of the obligation. obligor is liable even for fortuitous event. CORNEJO. one creditor 2. The obligation must be demandable MEMORY AID IN CIVIL LAW d) Tender of Payment and Consignation Tender of Payment  manifestation of he debtor to the creditor of his decision to comply immediately with his obligation Consignation  deposit of the object of the obligation in a competent court in accordance with the rules prescribed by law after refusal or inability of the creditor to accept the tender of payment. payment extinguishes obligation to the extent of the value of the thing delivered as agreed upon. when two or more persons claim the right to collect 4. supplement or complete the tender of payment in order to discharge the obligation LOSS OF THE THING DUE 1. when the nature of the obligation requires the assumption of risk. debtor must be partially or relatively insolvent 3. unless there is contrary intention appear at the place of payment 2. when the loss of the thing is due partly to the fault of the debtor. or does not CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. not necessarily in state of financial difficulty 3. Jinky Mangantulao. Anna Leah Y. the interested parties shall also be notified thereof  Effect: GENERAL RULE: Consignation shall produce effects of payment only if there is a valid tender of payment. The debt sought to be paid must be due 2. d. The consignation having been made.  Requisites: 1.  Requisites: 1. when the debt of a certain and determinate thing proceeds from a criminal offense. plurality of creditors 2. when by stipulation.

defects and vices in the old obligation are not cured 5. are principal creditors & principal debtors of each other 2. 1624 to 1627 2. Alwin Bryan Villaflor 9 . unless otherwise expressed by the parties. debtor’s consent is not required 3. 2. that it must take place in the person of either the principal creditor or the principal debtor 3. one person where qualities of debtor and creditor are merged 2. CORNEJO. 1300 to 1304 2. defects and vices in the old obligation are cured 5. As to its essence a) Objective/Real – refers to the change either in the cause.  Requisites: 1. Tiongson.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! CONFUSION OR MERGER OF RIGHTS  merger of the characters of the creditor and the debtor in one and the same person by virtue of which the obligation is extinguished. only one obligation 3. Delegacion – effected with the consent of the creditor at the instance of the old debtor. Expromision – effected with the consent of the creditor at the instance of the new debtor even without the consent or even against the will of the old debtor. validity of the new obligation  Kinds: 1. A third person not interested in the obligation pays with the express or tacit CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. Ana Liza Pural. governed by Arts.  Requisites: 1. extinguishment of the old obligation 4. both debts must be due 4. there must be no retention or controversy rd commenced by 3 persons over either of the debts & communicated in due time to the debtor 6. or by substituting another in place of the debtor. certain obligations in favor of government  Taxes are not subject to set-off or legal compensation because the government & taxpayers are not mutually creditors & debtors of each other (Francia vs. extinguishes the obligation and gives rise to a new one Assignment of Rights 1. both debts must consist in money. or an addition of such elements to an obligation. there must be at least two obligations Confusion 1. RAMOS Members: Malou Ababa. 2. they must be of the same kind & quality 3. debts arising from contracts of deposit 2. without debtor’s knowledge. IAC) NOVATION  substitution or change of an obligation by another. Janice Tejano. two persons who are mutual debtors and creditors of each other 2. compensation must not be prohibited by law Compensation 1.  A change in the incidental elements of. Creditor pays another creditor who is preferred. takes effect upon notification MEMORY AID IN CIVIL LAW Debts not subject to Compensation: 1. EDP: JUDITH Y. obligations arising from criminal offenses 5. debts arising from contracts of commodatum 3. will not result in its extinguishment Conventional Subrogation 1. who. governed by Arts. Ma. Anna Leah Y. either by changing its object or principal conditions. in their own right. both debts must be liquidated & demandable 5. there must be 2 parties. a previous valid obligation 2. resulting in its extinguishment or modification. object or principal conditions of the obligations b) Subjective/Personal – refers to the substitution of the person of the debtor rd or to the subrogation of a 3 person in the rights of the creditor c) Mixed 2. with the concurrence of the new debtor. As to its form/constitution a) Express – when it is declared in unequivocal terms that the old obligation is extinguished by a new one w/c substitutes the same b) Implied – when the old & new obligation are incompatible w/ each other on every point 2 Forms of Substitution of Debtors: 1. EXCEPTIONS: 1. or by subrogating a third person in the rights of the creditor. it must be complete & definite COMPENSATION  extinguishment in the concurrent amount of the obligation of those persons who are reciprocally debtors and creditors of each other.  Requisites: 1. claims for support due by gratuitous title 4. Roderick Reyes. transmission of right of the creditor to third person without modifying or extinguishing the obligation 4. Jinky Mangantulao. that the characters of creditor & debtor must be in the same person 2. agreement of the parties to the new obligation 4. debtor’s consent is required 3. or if the things due are fungibles. as far as the debtor is concerned. takes effect upon moment of novation or subrogation GENERAL RULE: Subrogation cannot be presumed.

usage and law. its validity or compliance must not be left to the will of one of them. RAMOS Members: Malou Ababa. Do ut facias – I give that you do 3. the terms and conditions of the contract must be intelligent. Cause or Consideration Nominate contracts  those which have their own distinctive individuality and are regulated by special provisions of law.  Requisites: 1. Consensuality  Contracts are perfected by mere consent and from that moment. CORNEJO. Obligatoriness and Consensuality 1315) 3. Consent 2. The parties’ conformity to the object. II. EDP: JUDITH Y. or b. pledge and commodatum requires delivery of object for perfection. while transactions under the Code of Commerce use MEMORY AID IN CIVIL LAW 3. knowledge of contract by third person c. Legal capacity of the contracting parties 2. Relativity (Art. Contracts entered into in fraud of creditors Mutuality  The contract must bind both parties. and d. Autonomy (Art. The said conformity must be real and not simulated or fictitious Offer – a proposal made by one party to another to enter into a contract Acceptance – manifestation by the offeree of his assent to the terms of the offer  The offer must be certain and the acceptance absolute  Consensual contracts are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause. a person interested in the fulfillment of the obligation pays without prejudice to the effects of confusion as to the latter’s share. Roderick Reyes. Object or Subject Matter 3. the contracting parties must have clearly and deliberately conferred a favor upon a third person. Even without debtor’s knowledge. EXCEPTIONS: 1. When a third person induces a party to violate contract (Art 1314)  Requisites: a. the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all consequences which. 1308) 4. 1306) (Art. Janice Tejano. Facio ut facias – I do that you do Characteristics of Contracts: (ROMA) 1. the third person must have communicated his acceptance. Stipulation pour atrui . not whole of the contract. CONTRACTS CONTRACT  Elements: (COC) 1. c. Anna Leah Y.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! approval of the debtor. good customs. Tiongson. Mutuality (Art. morals. cause. Third persons who come into possession of the object of the contract creating real rights 4. (Art. Jinky Mangantulao. 1311) 2. interference by third person without justification 3. CONSENT  manifested by the meeting of the offer and acceptance upon the thing and the cause which are to constitute the contract.stipulation in favor of a third person. 1308) Autonomy  The parties are free to stipulate anything they deem convenient provided that they are not contrary to law. Ma. Alwin Bryan Villaflor 10 . Existence of a valid contract CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. according to their nature may be in keeping with good faith. 2. by rule governing the most analogous nominate contracts and by the customs of the place  4 Kinds: 1. assigns and heirs.  Real contracts like deposit. Innominate contracts  those which lack individuality and are not regulated by special provisions of law. neither of the contracting parties bears the legal representation of the third person.  Contracts under the Civil Code generally adhere to the Cognition Theory. public order and public policy. Do ut des – I give that you give 2. Relativity GENERAL RULE: Contract is only valid between parties.  Requisites: a.  regulated by the stipulations of the parties by the general provisions of the Civil Code on obligations and contracts. spontaneous and free from all vices of consent 4. b. Ana Liza Pural. the stipulation must be part. Manifestation of the conformity of the contracting parties 3. Facio ut des – I do that you give 4.

accident. relative simulation. OBJECT  Requisites: 1. the service or benefit w/c is remunerated 3. VICES OF CONSENT (MIVUF) 1. or inequitable conduct 3. Cause should be in existence at the time of the celebration of the contract 2. clear and convincing proof of mistake. Fraud – when. Absence of cause 2. Intimidation – when 1 of the contracting parties is compelled by a reasonable & wellgrounded fear of an imminent & grave evil upon his person or prop of his spouse. It must be licit or not contrary law. Illegality of EFFECT the contract confers no right and produces no legal effect does not render the contract void the contract is null and cause 4. Tiongson. Failure of cause 3. in whatever form they may have been entered into. When the agreement is void.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! the Manifestation Theory. Janice Tejano. he would not have agreed to. relative simulation. EXCEPTIONS: 1. Undue influence – when a person takes improper advantage of his power over the will of another. meeting of the minds to the contract 2. descendants or ascendants. 3. Roderick Reyes. true intention is not expressed in the instrument by reason of mistake. direct and most proximate reason which explains and justifies the creation of obligation. public order or public policy 3. Ma. Falsity of cause void the contract is void. EDP: JUDITH Y. RAMOS Members: Malou Ababa. fraud. When the law requires that a contract be in some form in order that it may be enforceable 3.COMMERCE ACT) provides that the formal requirements to make contracts effective as against third persons and to establish the existence of a contract are deemed complied with provided that the electronic document is unaltered and can be authenticated as to be usable for future reference. or inequitable conduct Instances when there can be no reformation: 1. 4. to give his consent 3. accident. Violence – when in order to wrest consent. provided all the essential requisites for their validity are present. Ana Liza Pural. For the convenience of the parties  Parties may compel each other to comply with the form required once the contract has been perfected. It must be w/in the commerce of man 2. CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. fraud. In remuneratory contracts. Cause should be true  Rules: 1. the prestation of promise of a thing or service by the other 2. Mistake – should refer to the substance of the thing which is the object of the contract. Jinky Mangantulao. CORNEJO. Lesion FORM OF CONTRACTS GENERAL RULE: Contracts shall be obligatory. Alwin Bryan Villaflor 11 . When one of the parties has brought an action to enforce the instrument no subsequent reformation can be asked. Simple unconditional donations inter vivos. morals. Anna Leah Y. serious or irresistible force is employed 4. Wills. unless the parties show that there is another cause which is true and lawful does not invalidate the contract. for each contracting party. It must be determinate as to its kind CAUSE  the immediate. mistake or undue influence. depriving the latter of a reasonable freedom of choice 5. good customs. without them. REFORMATION OF INSTRUMENTS  Requisites: 1. When the law requires that a contract be in some form in order that it may be valid 2. (Art 1357)  RA 8792 (E. the cause is understood to be. unless (1) there is fraud. In onerous contracts. the mere liberality of the benefactor CAUSE 1. through insidious words or machinations of 1 of the contracting parties. the other is induced to enter into a contract which. or to those conditions which have principally moved one or both parties to enter into the contact 2. 2. It must be possible 4. Cause should be licit or lawful 3.  Requisites 1. In contracts of pure beneficience. or (2) when the parties intended a donation or some other contract MEMORY AID IN CIVIL LAW 5.

Action for the declaration or nullity or inexistence or defense of nullity or inexistence does not prescribe 4. Ma. those agreed upon in representation of absentees. sale upon credit by an insolvent debtor. 4. those where one of the parties is incapable of giving consent to a contract CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. transfer of all his property by a debtor when he is financially embarrassed or insolvent. authority. Jinky Mangantulao. if the latter suffer lesion by more than ¼ of the value of the things which are subject thereof. as a general rule produce any legal effect 3. Ana Liza Pural. the person demanding rescission must be Assailed directly or collaterally able to return whatever he may be able to return whatever he may be obliged to restore if rescission is granted 4.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! MEMORY AID IN CIVIL LAW COMPARATIVE TABLE OF DEFECTIVE CONTRACTS VOID VOIDABLE RESCISSIBLE 1. where there is present any of the above circumstances 7. if there was total or partial performance of the unenforceable contract under No. Do not. Janice Tejano. 3. 3. payments made in a state of insolvency on account of obligations not yet enforceable  Requisites: 1. by reason of lesion or economic prejudice. Assailed not only by a contracting party but even by a third person whose interest is directly affected 7. RAMOS Members: Malou Ababa. those entered into by guardians where the ward suffers lesion of more than ¼ of the value of the things which are objects thereof. the contract must be rescissible 2. Alwin Bryan Villaflor 12 . EDP: JUDITH Y. transfer made between father & son. those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants and the court. failure of the vendee to take exclusive possession of all the property VOIDABLE CONTRACTS  What contracts are voidable: 1. the things w/c are the object of the contract must not have passed legally to the possession rd of a 3 person acting in good faith 5. Anna Leah Y. or capacity of both parties not cured by prescription Cannot be enforced by a proper action in court Corresponding action for recovery. may be rescinded in cases established by law  What contracts are rescissible: 1. 2. evidence of indebtedness or complete insolvency 5. the party asking for rescission must have no other legal means to obtain reparation for the damages suffered by him 3. CORNEJO. Not cured by prescription 5. transfer was made by a debtor after a suit has been begun and while it is pending against him. 5. the action for rescission must be brought w/in the prescriptive period of 4 years Badges of Fraud: 1. and 6. 2. Defect is caused by Defect is caused by Defect is caused by lack of essential vice of consent injury/ damage either to elements or illegality one of the parties of to a rd 3 person 2. Tiongson. 6. consideration of the conveyance is inadequate or fictitious. Roderick Reyes. those undertaken in fraud of creditors when the latter cannot in any manner claim what are due them. 1 or 3 of Art. Assailed directly or collaterally Valid and enforceable until they are annulled by a competent court Action for annulment or defense of annulability may prescribe Valid and enforceable until they are rescinded by a competent court Action for rescission may prescribe UNENFORCEABLE Defect is caused by lack of form. 1403 may prescribe Not cured by prescription Can be ratified Assailed only by a contracting party Cured by prescription Can be ratified Assailed only by a contracting party Cured by prescription Need not be ratified Assailed not only by a contracting party but even by a third person who is prejudiced or damaged by the contract Assailed directly only Assailed directly or collaterally RESCISSIBLE CONTRACTS  Contracts validly agreed upon but. 4. Cannot be ratified 6. all other contracts especially declared by law to be subject to rescission.

the injured party must have executed an act which expressly or impliedly conveys an intention to waive his right. the time the mistake or fraud is discovered. not to those that are already partially or completely fulfilled. there must be knowledge of the reason which renders the contract voidable. Special promise to answer for the debt. By loss of the thing which is the object of the contract through fraud or fault of the person who is entitled to annul the contract. Agreement or contract which is not illegal per se & the prohibition is designed for the protection of the plaintiff 5. and 2. undue influence or fraud. intimidation or undue influence ends. EXCEPTIONS: 1. object or purpose is contrary to law. CORNEJO. Agreements within the scope of the Statute of Frauds (exclusive list): 1. b. those entered into in the name of another by one without or acting in excess of authority.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! 2. Failure to object to the presentation of oral evidence to prove the same 2. those which do not comply with the Statute of Frauds. and c. Principle of Pari Delicto GENERAL RULE: When the defect of a void contract consists in the illegality of the cause or object of the contract and both of the parties are at fault or in pari delicto. Those which are absolutely simulated or fictitious. otherwise. Those whose cause or object did not exist at the time of the transaction. Agreement in consideration of marriage other than a mutual promise to marry. 3. EDP: JUDITH Y. b.  The contracts/agreements under the Statute of Frauds require that the same be evidenced by some note. Ratification of contracts in violation of the Statute of Frauds 1. 4. Tiongson. Ratification  Requisites: a. Anna Leah Y. Those where the intention of the parties relative to the principal object of the contract cannot be ascertained. 5. Alwin Bryan Villaflor 13 . public order or public policy. morals good customs. 2. Contract whereby a laborer undertakes to work longer than the maximum # of hours fixed by law 7. Those whose cause. Jinky Mangantulao. MEMORY AID IN CIVIL LAW CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. Representation as to the credit of a third person.00. Agreements for the sale of real property or interest therein. Janice Tejano. the law refuses them every remedy and leaves them where they are. Guilty party is barred from recovering what he has given to the other party is barred from recovering what he has given to the other party by reason of the contract. 2. INEXISTENT CONTRACTS  What contracts are inexistent: 1. Rules when only one of the parties is at fault: A. 3. or c. Acceptance of benefits under them VOID CONTRACTS  What contracts are void: 1. or before any damage has been caused to a rd 3 person. violence. Roderick Reyes. Payment of usurious interest 2. Executed Contracts: 1. Ma. etc. and 5. 2. the said contracts shall be unenforceable  The statute of frauds applies only to executory contracts. the time the violence. Payment or delivery made by an incapacitated person 4. Those whose object is outside the commerce of men. memorandum or writing. Contracts of lease for a period longer than one year. those where the consent is vitiated by mistake. default or miscarriage of another. subscribed by the party charged or by his agent. at a price not less than P500. Payment of money or delivery of property for an illegal purpose. 3. 2. Payment of any amount in excess of the maximum price of any article or commodity fixed by law 6. and 7. Contract whereby a laborer accepts a wage lower than the minimum wage fixed by law. such reason must have ceased. Those which contemplate an impossible service. UNENFORCEABLE CONTRACTS  What contracts are unenforceable: 1. Causes of extinction of action to annul: 1. intimidation. 6. where the party who paid or delivered repudiates the contract before the purpose has been accomplished. Agreement for the sale of goods. Those expressly prohibited or declared void by law. 3. and 3. 4. Ana Liza Pural. the time the incapacity ends. Prescription  the action must be commenced within 4 years from: a. RAMOS Members: Malou Ababa. those where both parties are incapable of giving consent. Agreements not to be performed within one year from the making thereof.

Ma. Technical Estoppel a. Estoppel by record 3. 6.SAN BEDA COLLEGE OF LAW – 2002 CENTRALIZED BAR OPERATIONS Reproduction in any form of this copy is strictly prohibited!!! 2. Estoppel by silence b. Estoppel by judgment 4. concerned with fact of delay 2. 3. they do not have the necessary efficacy to give rise to an action  Examples of natural obligations enumerated under the Civil Code: 1. not based on a fixed based on a fixed time CIVIL LAW MEMORY AID COMMITTEE: Chairperson: OLIVIA B. applies at law MEMORY AID IN CIVIL LAW 1. and 7. 2. Payment by heir of debt exceeding value of property inherited. Reimbursement of a third person for a debt that has prescribed. Anna Leah Y. not statutory PRESCRIPTION 1. B. applies in equity time 4. question of inequity of permitting the claim to be enforced 3. and presupposes a prestation  The binding tie of these obligations is in the conscience of man. Alwin Bryan Villaflor 14 . Roderick Reyes. concerned with effect of delay 2. 4.  Kinds: 1. Performance after the civil obligation has prescribed. ESTOPPEL  A condition or state by virtue of which an admission or representation is rendered conclusive upon the person making it and cannot be denied or disproved as against the person relying thereon. Executory Contracts: Neither of the contracting parties can demand for the fulfillment of any obligation from the contract nor may be compelled to comply with such obligation NATURAL OBLIGATIONS  They are real obligations to which the law denies an action. Estoppel by deed b. CORNEJO. Payment of legacy after will has been declared void. Janice Tejano. statutory 4. Estoppel in Pais (by conduct) a. but which the debtor may perform voluntarily  It is patrimonial. Estoppel by acceptance of benefits 2. Jinky Mangantulao. Restitution by minor after annulment of contract. Ana Liza Pural. Performance after action to enforce civil obligation has failed. for under the law. Delivery by minor of money or fungible thing in fulfillment of obligation. RAMOS Members: Malou Ababa. Laches LACHES 1. question or matter of time 3. Tiongson. 5. Innocent party may demand for the return for the return of what he has given. EDP: JUDITH Y.